After the 2021 boom, the hype that fueled non-fungible token (NFT) trading has died down. Cryptocurrency prices have plummeted from their previous highs, and widespread interest in digital collectibles has waned, driving NFT prices lower. But the extended crypto winter has arrived with a potential silver lining: tax loss collection, where NFT enthusiasts can sell their no-longer-valuable JPEGs and claim losses to offset their tax bill. Enter Unsellable, a platform launched last month where purchases “worthless” NFTs for the cost of gas plus a few dollars. The site acts as instant liquidity for, as the name suggests, non-sellable NFTs, offering NFT investors a quick way to recover their losses.
“Think of us as a Web3 garbage disposal,” the website reads. As of this writing, the service has purchased more than 9,300 NFTs so far, according to Etherscan. The most valuable NFT in the unsellable collection on OpenSea is Army of the Dead #78; a skeleton-themed PFP sold for over 3.6 wrapped Ether (wETH) in January 2022. At the time of the sale, when ETH was worth around $3,300, the NFT was valued at about $12,000.
Today, as the price of ETH has dropped significantly, the same token is only worth $4,330.
did a little bit of analysis on this service. so far they've purchased almost 5,500 NFTs.
the most expensive NFT to have been sent to the service was one that sold for just under $12,000 in January 2022. https://t.co/CdV13KGi1a
— Molly White (@molly0xFFF) December 30, 2022
Most of the NFTs purchased from the site are spin-off projects; H. collections based on other well-known works frequently deteriorate. These include Lost Nouns, a spin-off of Nouns, Anatomy Science Ape Club, BAYC, and Baby Goblinz, a play about Goblin-town. Additionally, the platform enables users to sell their unwanted NFTs in bulk. A collector sold dozens of NFTs from the GoopGirls collection and others in a single transaction, paying just 0.05 ETH (about $65) plus gas fees.
The platform’s popularity stems from once-profitable traders trying to cut their losses. Prices of most NFTs and cryptocurrencies peaked in dollar terms this past December and January, with NFTs being particularly hard hit. The NFT price boom also coincided with an increase in trading volume, meaning most NFTs purchased at the time were priced higher than current values.